Perks At Work: What Benefits Make Your Employees Happy?
Free lunch! 12 weeks of paid parental leave! Tuition reimbursement! You may have noticed more and more companies offering shiny perks at work to recruit top talent. Your staff and top candidates are paying attention to what employee benefits those companies are offering, too.
Our survey of 1,500 US workers found that 68% of job seekers want to know what employee benefits companies offer—yet 36%of HR professionals admit their company doesn't disclose benefits information up front.
That could be a mistake. Benefits packages are critical when candidates are weighing multiple job offers (or deciding whether to apply at all). Beyond serving as a powerful recruiting tool for job seekers, benefits also play a large role in employee satisfaction and can encourage your top talent to stick around.
The employee benefits landscape is continually changing, and trends differ between industries, locations, and roles. As an HR pro and the architect of your organization’s benefits package, staying on top of what’s expected—and what truly stands out—will help you reach your company’s hiring and retention goals.
At BambooHR, we get a unique look into how companies of all sizes, industry, and geographical location are leveraging benefits to accomplish their goals—and how they’re using our Benefits Administration to do it.
Read on to discover benefits benchmarks that can help you gauge how your company stacks up, plus examples of companies people really want to work for.
What Are Employee Benefits?
Employee benefits are the perks and compensation that companies provide their staff in addition to their salary. This could include anything from paid time off (PTO) policies to flex time, to retirement benefits and employee healthcare plans.
As an employee, these are crucial to work-life balance and job satisfaction. But employee benefits have plus points for companies too—like employee retention, improved morale and high-quality applicants.
What Perks Do Employees Actually Want?
According to Forbes Advisor research, US employees look for five key benefits:
- Healthcare covered by their employer: 67% think employee healthcare plans are the most important benefit.
- Life insurance: 45% want this benefit as part of their perks at work offering.
- Pension and retirement plan options: 34% are looking ahead and seeking this as part of their employee benefit package.
- Mental healthcare benefits: 33% want to see more support from employers with benefits covering mental healthcare.
- Mandatory PTO: 31% want to see businesses offering mandatory paid time off—though it’s worth noting that none of the participating businesses in this survey considered mandatory PTO an essential benefit.
9 Sought-After Healthcare Benefits
When it comes to healthcare, there's a basic set of obvious healthcare plans and wellness benefits like medical, dental, and vision care. You’d be hard-pressed to find a company that doesn’t offer these.
What makes companies stand out is when they offer additional physical and mental healthcare benefits that help their employees thrive.
According to SHRM, 88% of employers ranked healthcare as “very important” or “extremely important” to their staff. And as there’s been an increased focus on mental health and menopause-related benefits this year, it could be a good time to prioritize these.
The Best Healthcare Benefits
- Long-term care insurance (e.g., financial support such as home health care)
Above Average Healthcare Benefits
- Pet insurance
- Menopause-related benefits
- Gym discounts
Basic Healthcare Benefits
- Medical
- Dental
- Vision
- Opt-in Health Savings Accounts (HSAs)
- Opt-in Flex Spending Accounts (FSAs)
Editor's Take: Companies with Stand-out Healthcare Benefits
- Capital One: Registered dietitians on-site and free virtual fitness classes are just the cherry on top of Capital One’s comprehensive healthcare benefits.
- Salesforce: Employees and their loved ones have access to support for those experiencing addiction, helping them through one of life’s greatest struggles. This is on top of offering rehab and recovery services through its medical plans. What’s more, its Soberforce and Mental Health Matters community groups set a great example of an inclusive approach to tackling addiction.
10 Options for Paid Time Off (PTO)
Work-life balance is increasingly important to younger generations, and PTO is a big part of that. In fact, 37% of workers value paid time off more than pay raises.
According to a recent study, 54% of US workers report working while on vacation. It’s important as a HR team to encourage people to take PTO, really unplug, and enjoy it. PTO is pretty standard across the board, but it’s the amount of time, as well as the types of PTO offered, that really set you apart as an employer.
We’re starting to see more companies adopt different types of reduced hours, like four-day work weeks or Summer Fridays (a policy encourages employees to take Fridays off between Memorial Day and Labor Day).
In 2024, Colorado, Illinois and Minnesota have enacted their own laws to ensure that companies are fair with their PTO policies. Illinois, for example, will now stipulate that employees can use their PTO for any reason. SRHM also noted a steadying of parental leave, which stands at around 40%, and a decline in voting leave, which is now at around 50%.
The Best PTO Benefits
- Unlimited PTO
- Paid parental leave
- Sabbaticals
- Reduced hours
Above Average PTO Benefits
- 3+ weeks of PTO
- 10–12 paid company holidays
- 3–5 days bereavement leave
Basic PTO Benefits
- 14–21 days of PTO per year
- 7–10 paid company holidays
- 2–3 days of bereavement leave
Editor's Take: The Best Companies to Watch
- Netflix: At Netflix, the PTO policy is “take vacation.” They leave it up to their employees to choose when they need a break, allowing their team members to observe what’s important to them—and when. This sort of policy normally falls under the category of unlimited PTO. But this isn’t necessarily the dream ticket it seems: as staff are often not technically be owed leave, or accrue it over the years, they could be less inclined to ask their managers for time off. It’s therefore important for UPTO employers to create a positive culture around time off and staff wellbeing. You can learn more about unlimited PTO in our blog.
- HubSpot: To ensure employees get a break, HubSpot holds a company-wide week off every July. In addition to their generous unlimited PTO policy and four-week paid sabbatical at each employee’s 5-year mark to make sure everyone gets much-needed time out of the office.
5 Ways to Support Retirement
Everybody’s workin’ for … retirement? Between a higher cost of living and longer life expectancies, younger generations have shown increasing concern about their ability to support themselves in retirement.
According to the US Bureau of Labor Statistics, 72% of workers in private industry have access to employer-provided retirement plans, and the vast majority provide some level of matching. Today, job seekers expect companies to offer retirement benefits that help them find financial peace and security beyond their base salary.
Like healthcare, retirement is also at the top the agenda for employers – with over 80% saying they considered retirements benefits to be “very important” or “extremely important. The average employer now matches up to 6.61% of 401K contributions, and 6.50% for Roth 401K contributions.
The Best Retirement Benefits
- Stock options
- Equity ownership plans
- Generous 401(k) matching (aim for 6.5% or more!)
Above Average Retirement Benefits
- Retirement planning services like a financial planner or retirement planning software
Basic Retirement Benefits
- Access to a 401(k), ideally with some employer matching
Editor's Take: Best Company to Watch
- Google: While many companies offer 401(k), Google goes a step further by offering one-on-one financial coaching. This extra step empowers Google employees to get strategic with their dollars as they plan for the future.
5 Ways to Improve Quality of Life
The work-from-home standard proliferated during the pandemic and has since morphed into a work-from-anywhere mindset. Digital nomads don’t just want work-from-home benefits, they want to work from coffee shops in Spain; parents want to take their kids to 2pm dance classes. In short, employees want to mold their work around their lives, rather than forming their lives around their work.
Fortunately, there’s also quite a bit of data that shows some people are more productive when they have flexible working conditions. One study found remote workers were 13% more productive than their in-office counterparts.
New Jersey, Utah and Delaware are the top three best states for remote work—based on metrics ranging from cybersecurity and internet costs to the size of the work-from-home (WFH) community in each state. So, if you operate from any of these and haven’t adopted a hybrid approach, it’s something to consider to keep up with employee needs.
The Best Quality of Life Benefits
Flexible work and quality of life benefits are also a priority in 2024, with 70% of employers calling them “very” or “extremely” important. Over 56% of employers provide office equipment like computers and desk chairs, or subsidize them.
- Incentives to use PTO (e.g., a stipend)
- Commuter benefits
- At-home work equipment
Above Average Quality of Life Benefits
- Hybrid work options
- *Flexible working hours. This is considered a number one fringe benefit for US workers.
*Note: Flex-time benefits vary widely between industries. For example, hybrid work options have become the standard in the tech industry, but are less common in industries like healthcare.
Basic Quality of Life Benefits
- Manager discretion on employee hours
Editor's Take: Best Companies to Watch
- BambooHR: At BambooHR, we know it can be difficult to step away from work. That's why we offer employees a $2,000 annual reimbursement stipend for vacation expenses. All we ask in return is to share pictures of your paid paid vacation when you return!
- Microsoft: Like many major tech companies, Microsoft offers a network of shuttles and busses equipped with wifi and software to make commuting more convenient.
6 Strategies for Addressing Growth & Development
The data doesn’t lie: Professional development is good for business. Employers who offer development opportunities have 15% higher employee engagement and higher retention than those who don’t. It's not uncommon for employees to leave their roles for opportunities that will advance their careers.
The Best Growth & Development Benefits
Keeping skills up to date is essential for staff and employers—especially in the face of AI and new tech that could make many jobs redundant. In 2024, over 80% of employers are offering formal education and training for new skills, professional development, keeping skills current, and certification fees.
- Tuition reimbursement
Above Average Growth & Development Benefits
- Dedicated time allotted for training & development
- Budget for training & development programs
- Mentorship opportunities
Basic Growth & Development Benefits
- Regular conversations about performance
- Opportunities for training and development
Editor's Take: Best Companies to Watch
- Starbucks: The coffee giant offers eligible employees the opportunity to earn a bachelor’s degree at Arizona State University. With 100% tuition reimbursement, this benefit effectively removes the barrier to entry for their employees when it comes to accessing higher education.
- Amazon: Amazon Technical Academy teaches nontechnical employees the skills they need to move into software engineering careers, setting them up for successful careers at Amazon and beyond.
Give Your Employees the Gift of Giving Back
Whether you choose to offer volunteer time off or match employee donations, offering charitable benefits shows your organization’s commitment to corporate social responsibility, which is a win-win-win for employees, employers, and the communities they serve.
Editor's Take: Best Company to Watch
- Apple: The tech giant will match up to $10,000 of employee charitable giving, whether in time ($25 per hour volunteered) or money (dollar-for-dollar donated).
Next Steps: Reevaluate Your Benefits Package
With four out of five employees preferring stellar benefits over a pay raise, it’s no surprise we’re seeing companies offer more robust and interesting perks. Beyond serving as a recruiting and retention tool, benefits are one of the ways you can show your employees that you truly value them as people.
When it comes to benefits, BambooHR makes it easy to choose what, who, why, and when. Not only does it support the full spectrum of benefits—including open enrollment, time off policies, performance reviews, and more—your employees have a user-friendly, one-login view of their benefits.